Preview | Production Sharing Contract |

TABLE OF CONTENTS


ARTICLE	CONTENTS	PAGE NO.
	Preamble	1-2
1	Definitions	3-12
2	Participating Interests	13
3	License and Exploration Period	14-15
4	Relinquishment	16-17
5	Work Programme	18-20
6	Management Committee	21-25
7	Operatorship, Operating Agreement and Operating Committee	26
8	General Rights and Obligations of the Parties	27-29
9	Government Assistance	30
10	Discovery, Development and Production	31-35
11	Petroleum Mining Lease	36-37
12	Unit Development	38-39
13	Measurement of Petroleum	40-41
14	Protection of the Environment	42-46
15	Recovery of Cost Petroleum	47-49
16	Production Sharing of Petroleum	50-52
17	Taxes, Royalties, Rentals, Duties etc.	53-56
18	Domestic Supply, Sale, Disposal and Export of Crude Oil
	and Condensate	57-58
19	Valuation of Petroleum	59-61
20	Currency and Exchange Control Provisions	62
21	Natural Gas	63-68
22	Employment, Training and Transfer of Technology	69
23	Local Goods and Services	70
24	Insurance and Indemnification	71
25	Records, Reports, Accounts and Audit	72


ARTICLE	CONTENTS	PAGE NO.
26	Information, Data, Confidentiality, Inspection and Security	73-75
27	Title to Petroleum, Data and Assets	76-77
28	Assignment of Participating Interest	78-80
29	Guarantees	81-83
30	Term and Termination of the Contract	84-86
31	Force Majeure	87-88
32	Applicable Law and Language of the Contract	89
33	Sole Expert, Conciliation and Arbitration	90-91
34	Change of Status of Companies	92
35	Entire Agreement, Amendments and Waiver and miscellaneous	93
36	Certificates	94
37	Notices	95-96


APPENDICES	CONTENTS	PAGE NO.
Appendix A	Description of the Contract Area	97
Appendix B	Map of the Contract Area	98
Appendix C	Accounting Procedure to the Contract	99-129
Appendix D	Calculation of the Investment Multiple for Production Sharing purposes	130-131
Appendix E1	Form of Parent company Financial and Performance Guarantee	132-133
Appendix E2	Form of Company Financial and Performance Guarantee	134-135
Appendix-F	Procedure for acquisition of goods and services	136-139
Appendix-G	Performa of Bank Guarantee to be provided pursuant to Article 29	140-142
Appendix-H	Itemized cost break-up of bid cost estimates given by the Contractor	143-153

iii

PRODUCTION SHARING CONTRACT

		This Contract made this 23^rd day of September 2005 between:

1.		The President of India, acting through the Joint Secretary, Ministry of Petroleum and Natural Gas (hereinafter referred to as the Government) of the FIRST PART;

AND

GeoGlobal resources (Barbados) Inc., a Company incorporated under the laws of Barbados, West Indies, (hereinafter referred to as GGR) having its registered office at Chancery House, High Street, Bridgetown, Barbados, West Indies, which expression shall include its successors and such assigns as are permitted under Article 28 hereof, of the SECOND PART;

WITNESSETH:

WHEREAS

(1)		The Oilfields (Regulation and Development) Act, 1948 (53 of 1948) (hereinafter referred to as the Act) and the Petroleum and Natural Gas Rules, 1959, made thereunder (hereinafter referred to as the Rules) make provisions, inter alia, for the regulation of Petroleum Operations and grant of Licenses and Leases for exploration, development and production of Petroleum in India;

(2)		The rules provide for the grant of Licenses and Leases in respect of land vested in a State Government by that State Government with the prior approval of the Central Government;

(3)		Rule 5 of the Rules provides for an agreement between the Government and the Licensee or Lessee containing additional terms and conditions with respect to the License or Lease;

(4)		The Government desires that the Petroleum resources which may exist in India be discovered and exploited with the utmost expedition in the overall interest of India and in accordance with modern oilfield and petroleum industry practices;

(5)		Companies have committed that they have, or will acquire and make available, the necessary financial and technical resources and the technical and industrial competence and experience necessary for proper discharge and/or performance of all obligations required to be performed under this Contract in accordance with

modern oilfield and petroleum industry practices and will provide guarantees as required in Article 29 for the due performance of its obligations hereunder; and

(6)		As a result of discussions between representatives of the Government and GGR, on the proposal of GGR, the Government has agreed to enter into this Contract with GGR with respect to the Contract Area identified as block DS-ONN-2003/1 and detailed in Appendix A and Appendix B, on the terms and conditions herein set forth.

		NOW, THEREFORE, in consideration of the premises and covenants and conditions herein contained, IT IS HEREBY AGREED between the Parties as follows:

ARTICLE 1

DEFINITIONS

		In this Contract, unless the context requires otherwise, the following terms shall have the meaning ascribed to them hereunder:

1.1		Accounting Procedure means the principles and procedures of accounting set out in Appendix C.

1.2		Act means Oilfields (Regulation and Development) Act, 1948 as amended from time to time.

1.3		Affiliate means a company or a body;

	a)		which directly or indirectly controls or is controlled by a Company which is a Party to this Contract; or

	b)		which directly or indirectly controls or is controlled by a company which directly or indirectly controls or is controlled by a Company which is a Party to this Contract.

For the purpose of this definition it is understood that control means:

	i)		ownership by one company of more than fifty percent(50%) of the voting securities of the other company; or

	ii)		the power to direct, administer and dictate policies of the other company even where the voting securities held by such company exercising such effective control in that other company is less than fifty percent(50%) and the term controlled shall have a corresponding meaning.

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